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Procurement Act

Effective July 1, 2003 - Threshold Amounts Effective July 1, 2010

Leases of Real Property

Requirements

Leases for real property must be awarded based
on a Request for Information process except in any of the following circumstances:
1) if the property is less than 10,000 square feet, 2) rent is less than
$100,000 per year, 3) duration of lease is less than one year and cannot
be renewed, 4) specialized space available at only one location, 5) renewal
or extension of a lease in effect prior to July 1, 1998 and a written
determination by the Chief Procurement Officer that the renewal or extension
is beneficial is submitted to the Procurement Policy Board and no objection
is received within 30 days.

Notice of Request for Information for a real property lease must be
advertised in an electronic Procurement Bulletin and a general circulation
community newspaper for at least 14 days.

With certain limited exceptions, the term of a lease for real property
cannot exceed 10 years and must include a termination option in favor
of the University after no more than 5 years.

Leases must include a termination clause that provides for cancellation
in any year for which the General Assembly fails to make an appropriation
to make payments under the terms of the lease.

Department Considerations

If a Request for Information must be used
for the intended lease of real property, the Department must include along
with its request (Requisition/EOS Request) the following information:
1) type of property to be leased, 2) proposed uses of the property, 3)
duration of the lease, 4) preferred location of the property, and 5) general
description of the configuration desired.

Department should be aware that failure to provide sufficient information
with the purchase request will result in additional delay in handling
the transaction while the necessary information is being gathered.

If the lowest qualified respondent by price is not selected, the Department
must provide a letter explaining the rationale for not selecting the lower
priced bidder(s) in consideration of the fact that a summary of such explanation
must be published in an electronic Procurement
Bulletin.